Note 6. Debt

The Company has a Second Amended and Restated Senior Credit Agreement (the “Facility”) which includes a five-year $50.0 million term loan (the “Term Loan”) and a $100.0 million revolving credit facility. The five-year $50.0 million Term Loan maturity date under the Facility is January 16, 2018 and the maturity date of the revolving credit facility under the Facility is January 2016, with one 12-month extension option exercisable by the Company, subject, among other things, to there being an absence of an event of default under the Facility and to the payment of an extension fee. The aggregate amount of the Facility may be increased to a total of up to $300.0 million, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts. Outstanding borrowings under the Facility are limited to the lesser of (i) the sum of the $100.0 million revolving credit facility and the $50.0 million Term Loan amount or (ii) 60.0% of the value of the borrowing base properties. The Facility is secured by a pledge of the borrower’s equity interests in the subsidiaries that hold each of the borrowing base properties. Interest on the Facility, including the Term Loan, is generally to be paid based upon, at the Company’s option, either (i) LIBOR plus the applicable LIBOR margin or (ii) the applicable base rate which is the greater of the administrative agent’s prime rate plus 1.00%, 0.50% above the federal funds effective rate, or thirty-day LIBOR plus the applicable LIBOR margin for LIBOR rate loans under the Facility. The applicable LIBOR margin will range from 1.65% to 2.65% (1.65% as of March 31, 2014), depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value. The Facility requires quarterly payments of an annual unused facility fee in an amount equal to 0.25% or 0.35% depending on the unused portion of the Facility. The Facility is guaranteed by the Company and by substantially all of the borrower’s current and to-be-formed subsidiaries that own a “borrowing base property.” The Facility includes a series of financial and other covenants that the Company must comply with in order to borrow under the Facility. As of March 31, 2014, there were $67.5 million of borrowings outstanding on the revolving credit facility and $50.0 million of borrowings outstanding on the Term Loan, under the Facility and 24 properties were in the borrowing base. As of December 31, 2013, there were $31.0 million of borrowings outstanding on the revolving credit facility and $50.0 million of borrowings outstanding on the Term Loan, under the Facility and 19 properties were in the borrowing base. The Company was in compliance with the covenants under the Facility at March 31, 2014 and December 31, 2013.

The mortgage loans payable are collateralized by certain of the properties and require monthly interest and principal payments until maturity and are generally non-recourse. The mortgage loans mature between 2014 and 2021. As of March 31, 2014, the Company had nine mortgage loans payable totaling approximately $104.4 million, which bear interest at a weighted average fixed annual rate of 4.5%. As of December 31, 2013 the Company had nine mortgage loans payable totaling approximately $108.3 million, which bore interest at a weighted average fixed annual interest rate of 4.5%. As of March 31, 2014 and December 31, 2013, the total net investment book value of the properties securing the debt was $211.7 million and $218.0 million, respectively.

During the three months ended March 31, 2014 and 2013, the Company capitalized approximately $0.3 million and $0.1 million, respectively of interest associated with redevelopment and expansion activities.

The scheduled principal payments of the Company’s debt as of March 31, 2014 were as follows (dollars in thousands):



		Credit Facility		Term Loan		Mortgage Loans Payable		Total Debt
2014 (9 months)	$	-	$	-	$	5,599	$	5,599
2015		-		-		24,585		24,585
2016		67,500		-		6,649		74,149
2017		-		-		1,916		1,916
2018		-		50,000		1,910		51,910
Thereafter		-		-		63,153		63,153
Subtotal		67,500		50,000		103,812		221,312
Unamortized net premiums		-		-		572		572
Total Debt	$	67,500	$	50,000	$	104,384	$	221,884

Weighted Average Interest Rate		2.1%		1.8%		4.5%		3.1%